US Bankcard Services Industry Blog

Friday, March 25, 2011

MERCHANT ALERT Fraud-Catering Scam

Notice to all Merchants, especially in Food & Beverage (Restaurant) industry: Exercise caution when taking over the phone orders.

The Scam:

The merchant receives a phone call usually over the hearing impaired relay network from a caller who states that he/she needs to place a food order for a large party or catered event.
The caller claims he/she cannot come to the location to pick-up the order and would like to use a “pick-up agent” to travel to the restaurant and take delivery of the food order.
The caller then advises the merchant that the “pick-up agent” does not accept credit cards.
The caller requests the restaurant to charge the “pick up” fee to the credit card(s) and to wire the funds to the “pick-up agent”.
The caller requested wire transfer amount may range between $2000.00 and $4000.00.
The merchant may even be provided several card numbers to complete the transaction(s).

The Result:

The merchant loses the money they have wired and will receive chargebacks for all fraudulent sale(s) the merchant has processed using the fraudulent credit card number(s) provided by the fraudulent caller.

The Solution:

Please call your Voice Authorization center and request a Code 10 on any orders resembling this scheme.
Should the any of our merchants suspect fraud, or if they have any questions in general, please contact U.S. Bankcard Services, Inc. by calling 888-468-1155. Thank you and please be careful!